THE ten funds represent some of the better-performing ones in the category. The exclusion of the other funds is not expected to significantly alter the outcome. Since a substantial proportion of excluded funds under-performed the funds in question, their inclusion may only strengthen the case for diversification.

As regards performance, it represents end-of-period wealth  that is, wealth generated from September 1998 to October 2002. The volatility in these months was not considered because it was assumed that, for a retail investor, monthly or quarterly volatility is less important than end-of-period wealth.

In this particular case, the performance from September 1998 to October 2002 was taken into consideration. The period was chosen because some of the better-performing funds in the Indian market came into existence then. Taking into account earlier periods would have eliminated a few such funds from the study.